HUD allocates more than $10 billion of Recovery Act funding one week after bill signingMortgagePress.comHUD, American Recovery and Reinvestment Act of 2009, Recovery Act, Shaun Donovan
The U.S. Department of Housing and Urban Development (HUD) has
allocated nearly 75 percent of its funding, or $10.1 billion, made
available through the American Recovery and Reinvestment Act of
2009. The Recovery Act includes $13.61 billion for projects and
programs administered by HUD, 75 percent of which was allocated to
recipients--only one week after President Obama signed the Act into
law.
The funding announced today is primarily formula-based, meaning
that it is allocated using set program criteria that do not require
grantees to apply for the funds, allowing them to be allocated very
quickly. The remaining 25 percent of the funds, which will be
competitively awarded later, will be used to build on the
President's priorities to promote green jobs and mitigate the
destabilizing effects of foreclosures on communities.
"I am pleased to announce that we are moving swiftly to get
these much-needed funds out to states and cities to create jobs and
help stimulate our economy," said HUD Secretary Shaun Donovan.
"Recovery Act investments in HUD programs will be not just swift,
but also effective: they will generate tens of thousands of jobs,
help the families and communities hardest hit by the economic
crisis, and modernize homes to make them energy efficient."
Promoting energy efficiency and creating green
jobs
These investments are powerful vehicles for economic recovery
because they work quickly, are labor-intensive, create jobs where
they are needed most, and lead to lasting neighborhood benefits.
Many will also reduce greenhouse gas emissions and save Americans
money by retrofitting housing to make it more energy efficient.
Public housing capital fund program: $3
billion
HUD is allocating nearly $3 billion to 3,134 public housing
agencies to develop, finance, and modernize public housing in their
communities. Local PHAs will use this funding for energy-efficient
modernization and to make large-scale improvements to public
housing developments, including critical safety repairs. In
addition to the funding allocated through this capital fund, HUD is
working to competitively award another $1 billion to local housing
agencies to support catalytic investments, particularly investments
that leverage private sector financing to retrofit public housing
and enhance energy conservation.
Native American Housing Block Grant (IHBG): $255
million
Tribal entities will use this funding for energy efficient
modernization of and renovation of housing maintained by Native
American housing programs. In addition to the funding allocated
through formula funding, HUD will competitively award another $242
million for Native American grants later this year. Also, pursuant
to today's recovery formula funding, HUD is allocating $10.2
million for Native Hawaiian Housing.
Lead hazard reduction/healthy homes: $100
million
Nearly $100 million will be invested in HUD's lead based paint and
hazard reduction and remediation activities, including promoting
local efforts to eliminate dangerous lead from lower income homes
and stimulating private sector investment in lead hazard
control.
Supporting shovel-ready projects and assisted housing
improvements
These investments will support a broad range of housing and
community development projects that are ready to go. Many of these
projects have been held up for lack of private investment due to
fallout from the broader economic crisis and credit crunch.
Tax Credit Assistance Program (TCAP): $2.25
billion
Funded under HUD's HOME Program, TCAP grants will help State
Housing Finance Agencies to kick-start the production of stalled
affordable rental housing projects that rely on Low-Income Housing
Tax Credits. These agencies will distribute the funds competitively
and give priority to housing projects that can begin construction
immediately.
Project-based rental assistance: $2
billion
HUD is allocating $2 billion to invest in full 12-month funding
for Section 8 project-based housing contracts. This funding will
enable owners to undertake much-needed project improvements to
maintain the quality of this critical affordable housing.
Promoting stable communities and helping families
hardest hit by the economic crisis
These investments will help communities and families that have
experienced the brunt of the economic downturn. Resources will be
used to stabilize and revive local neighborhoods and housing
markets with heavy concentrations of foreclosed properties. Funds
will also assist the vulnerable families and individuals who are on
the brink of homelessness or have recently become homeless.
Community Development Block Grant Program (CDBG): $1
billion
HUD is allocating nearly $1 billion to approximately 1,200 state
and local governments through the Department's Community
Development Block Grant (CDBG) program to target their own
community development priorities. Most local governments use this
investment to rehabilitate affordable housing and improve key
public facilities--helping to stabilize communities and create jobs
locally.
Emergency Shelter Grant Program/Homelessness Prevention:
$1.5 billion
HUD is allocating nearly $1.5 billion to state and local
governments to help rapidly re-house homeless persons and families
who enter shelters. In addition, HUD's Emergency Shelter Grant
Program (ESG) will significantly expand efforts to prevent
homelessness among those facing a sudden economic crisis.
FHA loan limits
HUD will temporarily increase the loan limits of mortgages insured
by the Federal Housing Administration (FHA) up to $729,750. This
will keep credit flowing to millions of families whose options are
limited by the current crisis. Previously, FHA's loan limits in
very high-cost areas were capped at $625,500. FHA's reverse
mortgage product known as the Home Equity Conversion Mortgage
(HECM) will have a new national mortgage limit of $625,500, up from
the previous limit of high of $417,000. These increased loan limits
are applicable to all FHA-insured mortgage loans endorsed until
Dec. 31, 2009.
For more information, visit www.hud.gov.
